Hi,
I have heard about people taking advantage of re-zoning by buying land which they suspect will have a zoning change, and then either developing or simply on-selling the land after the new zoning allows the land to be used for something more profitable. And they may have an active (through application to council) or passive role in the re-zoning process.
What I'd like to know is how does one go about researching this?
Is it something that the average investor can do, or is it only really the Peter Spann-type's or institutional investors?
What is a rule of thumb in the "valuable" order of zonings?
I understand higher density residential is more valuable than lower density residential, but what about other zonings, including residential vs non-residential, business vs industrial, rural vs residential?
HJ72
Hello
Firstly, none of us are average and secondly, you can do anything esp if others have done it before you.
I do not know what state you are from but in W.A. we have state residential design codes and this tells us what we can do with the land. I am sure that your state would have something of a similar nature, see eg.
http://www.wapc.wa.gov.au/Publications/Rcodes2002tables.pdf?id=591
I make it my business to keep track of most shires, their meetings and what their plans are…. yes, it is a time consuming job but maybe think about areas in cities that have large lots of land and start your research there. The shire websites have loads of information.
The other alternative is to pay a buyers agent but I usually like to do all the ground work myself.
I NEVER bank on land being rezoned or take a punt… that is like gambling! if you take a punt you will end up paying way too much for the land and not being able to develop it.
Research, research, research!!!
Also from WA here. Another thing is the rezoning can take many years to eventuate. Ive been told of a Perth council that are reveiwing their town planning scheme with proposed zone upgrades. They are yet to implement them and its been 5+ years. The process is lengthy with public advertising and referrals, and WA planning commission submission etc.
So it involves a lot of research unless you dont mind holding for a long time before zone changes. By the time they get closer to implementing the rezone the prices are already quite inflated.
But that said if there is specific strategy anyone has to share i would be interested to know it!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
